Industry standards bodies The International Swaps and Derivatives Association (Isda), FIX Protocol and Twist have agreed to work together on developing a common messaging protocol for the foreign exchange markets.
The groups are to analyse gaps in coverage in their respective standards – FIX, FpML and Twist - as the basis for future developments in the FX area.
The group says agreement on the universal business meaning of information and message scenarios and establishment of common messaging standards, will help enable straight-through processing of forex messages between industry counterparties, regardless of the network used, the platforms employed or the operating systems used.
Tom Buschman, chairman of Twist, says: "Processing foreign exchange transactions involves transacting counterparties and many service providers. Where counterparties may differ but processes are the same, it makes sense for like-minded standard organisations to work together to deliver harmonised standards. This accelerates the ability for the market to obtain benefits from high degrees of automation and enhanced low-cost market access."
Scott Atwell of American Century Investments and FPL Global Steering Committee Co-Chair, adds: "Through the collaboration of these three standards bodies, we will now be able to more clearly define and articulate the 'spaces' each standard serves, to leverage the unique capabilities each provides, and to attempt to avoid the appearance of duplication."